State Bank of India (SBI) chairman Mr. Rajneesh Kumar has batted for the privatization of some of the state running Public Sector Banks. Although he raised the concern on the timing. He said that the time, though, is not right at present, because these banks would need time to be strengthened and one has to put behind the turmoil in the banking sector. Further, he added that the post Punjab national bank fraud, the perception that the banking system was going through a turmoil.
According to him, it would take at least two years for the banks to be strengthened for divestment. He said it very clearly that the SBI alone could not manage to meet all the goals set by the government on social inclusiveness as recently economist Arvind Panagariya had argued that all the PSBs, except the SBI, could be privatized to make the banking system more dynamic.
He raised concern on the performance of Private Bank’s contribution in financial inclusion.